Is Bankruptcy Even Possible For Me?

[Michael CT]

I've just found this message board, and hope that some of the good information I'm seeing posted from people here here can help me.
Here's the honest breakdown of my bad (and self-created) situation: It's a long story... I hope some of you will read it and offer advise.

In 2001, I left a good paying white collar job when I began to sink under the weight of some growing psychological and drug problems. After a year, my savings ran out and I began to take out a series of unsecured personal loans and additional credit cards. Of course, I used new loans and cash advances to pay my bills. I listed my previous job and salary information on all loan and credit card applications taken out after I became unemployed.
I haven't filed tax reurns since 2001. I lived on the monies from loans and credit cards. I have no proof of income since that time. The well has now run dry and I'm in debt for approx. $200,000 to many creditors. The collectors have now begun to call.
I'm sober now (no rehab, just the help and support of family and friends), actively seeking work, and desperately need to find a way to get my life back on track. I have no property or monies to be taken from creditors. I'm looking for work, but nothing has happened yet.
I'm ashamed of what I've done. I've been frozen with fear of the future for too long. I've created my own situation, and am afraid to attempt to file for chapter 7 bankruptcy because of lying on loan and credit card applications. I'm afraid I'll be charged with fraud. Will my case be thrown out of court because of my dishonesty? Will a lawyer even be able to help?
In all honesty, in my deluded prior state, I planned to end my own life before the wolf came knocking at the door, but now I've gotten sober and realize that life is too precious to throw it away. Still, I'm really in trouble, and really don't know if the option of Chapter 7 is even possible for me.
I hope some of you out there will have some advice.

[BassBoy]

First, welcome to the forum. Second, congrats on cleaning up and seeing that ending your life is not an option.

What raises a "flag" is the amount of unsecured debt you have. Whether you have a great paying job or not, filers with 6 figure debt may be looked at more closely. You will really need the assistance of an attorney.

As far as lying on CC apps and loan apps...well...that may be something that could come back to haunt you, although I feel it is unrelated to the BK. I don't believe the Trustee is interested in how you got so much credit, but rather, if you have any money or assets that could be turned over to him/her to sell in order to pay creditors.

That aside, if your creditors were to object to the dischargeability of the debt you incurred with them, you would be responsible for that debt if they were to "win". That's the only negative I see about lying on the applications. IMO, if the creditor didn't have enough brains to verify your income, then shame on them.

[Walnut]

Wow... well this is a tough spot. There are a few things you could do that are pretty harsh besides going for a BK - one is to move to Texas or Florida which are more debt-friendly than the Northeast. Beyond creating a new identity for yourself, which I don't recommend and couldn't tell you how to anyway, my advice is to do what Bass says and get an attorney ASAP and be straight up and honest with him. He can't help you unless he knows everything. It is this easy access to credit that enabled you so to speak. Why none of them thought to call your past employer for a reference is beyond me. The attorney can also advise you on what is likely to happen if 1) you do nothing, 2) you file BK and no fraud is charged, or 3) you file BK and fraud is brought up. What you need to do is realize all is not lost. Addiction is no different than gambling really - and you were not thinking clearly back then. Try a few free consultations and let us know what you find out.

[jimd]

Wow. I would suggest you seek the assistance of two professionals. One, a tax accountant and the second, a bankruptcy lawyer. The fact that you have not filed income tax returns when otherwise obligated will be a problem in the bankruptcy.

[lrprn]

The fact that you have not filed income tax returns when otherwise obligated will be a problem in the bankruptcy.

Not necessarily. If MichaelCT made under the minimum required income to file for the years he didn't file (and that amount varies according to filing status, age, and the type of income), then he'll be ok - he just has to prove that he didn't make enough money for those years if he files bankruptcy. See the IRS's "Should You File a Tax Return?" at http://www.irs.gov/newsroom/article/...105097,00.html